Prices for under-construction properties are surging, outpacing even ready-to-move-in options in some key cities. A Magicbricks Propindex report reveals a significant 15.2% jump in under-construction property prices across 13 major Indian cities during the June quarter (April-June 2024). This trend coincides with an 11.7% increase in the supply of such properties, marking the fastest growth rate in residential supply witnessed in the past 24 months.
This counterintuitive pricing shift suggests growing confidence in the long-term potential of the real estate market. Buyers, particularly in major hubs like Gurugram (19.6% QoQ demand growth), Delhi (17% QoQ), and Noida (16.4% QoQ), are increasingly willing to wait for completion in exchange for potentially lower upfront costs compared to ready-to-move-in options. This price difference can be a significant advantage, especially for first-time homebuyers looking for an entry point into the market.
While the report highlights positive growth in both demand (4.6% QoQ across top cities) and supply, it’s crucial to remember the dynamic and location-specific nature of the real estate market. Thorough research and due diligence are essential before any investment decision. Consulting with a reputable real estate agent and understanding project timelines (average completion times vary depending on the project size and location) and developer reputations are crucial steps towards a successful purchase.
This trend in under-construction properties is significant as it highlights a potential shift in buyer preferences. With careful planning and research, purchasing an under-construction property can offer a cost-effective way to enter the property market. The potential benefits include lower upfront costs compared to ready-to-move-in options and the chance to capitalise on long-term value appreciation as the property nears completion. However, navigating this market requires caution and a focus on reliable information and reputable developers.